It would make an arresting addition to any estate agent's particulars. From next week a gated apartment complex in east London will be able to boast not just landscaped gardens and sparkling fountains but also a battery of rooftop surface-to-air missiles.

The Bow Quarter complex of more than 700 apartments is the first of a handful of housing developments close to the Olympic Park chosen by military planners to host high velocity rockets aimed at preventing an airborne terrorist attack on this summer's Games.

Ministry of Defence officials will this week inform a number of other residents within firing distance of the main stadiums that their homes have been selected to become part of London's military lockdown. The missile units will be installed and armed with dummy rockets in time for a national Olympic security exercise starting on Wednesday. The test of the government's £1bn security plans will run either side of the forthcoming bank holiday weekend and will see RAF Typhoon fast jets and military helicopters operating above London and the home counties.

The Star Streak missiles that are likely to be installed on top of a water tower inside the Bow Quarter complex travel at more than three times the speed of sound, have a range of 5km and use a system of three dart-like projectiles to allow multiple hits on a target. Ten soldiers will be on duty at all times to guard and operate the missiles if needed to bring down a fast-moving jet or helicopter attack.

On Sunday residents of the privately owned complex voiced concern about the strategy and lack of consultation, with some fearing the rockets could make them a target for terrorism.

"It is rather surreal," said Nathan Lewis, a software developer who lives in the block beneath where the weapons will be located. He speculated it might be a piece of "security theatre" by the authorities. "It is an example of the insane world we live in post-9/11. I don't think anyone here feels more secure because of this.

"The question is, will this make us a target? They haven't answered that properly and we know troops themselves are a terrorist target."

He said worries included whether a terrorist could seize control of the weapons and even hotwire them.

"It is not unusual for property management companies to take decisions without telling us, but when it is about missiles on the roof it beggars belief," said resident Brian Whelan, 28, who added he had seen eight uniformed soldiers carrying an unidentified crate into the basement several weeks ago.

"Live ammunition where you live is not something you want. Why didn't they build their missile base in the Olympic Park? It is bad planning on their part and poor communication with the people that live here."

MoD officials said the soldiers would be unarmed, but they might be supported by armed police guards.

The residents were made aware of the plans when MoD leaflets were dropped through their letterboxes on Friday night. The leaflet said: "The location has been chosen as it is situated close to the Olympic Park and offers an excellent view of the surrounding area and the entire sky above the Olympic Park. The top of the tower also offers a flat, uncluttered and safe area from which to operate.

"Following a detailed analysis of a number of possible locations … Lexington Building water tower proved to be the only suitable site in this area for the high velocity missile system."

"Are we going to be more or less safe?" said Alistair Holmes, 44, a risk manager at a bank who has lived at the complex for 13 years. "My fear is if you fire missiles from up there it will cause debris to fall all over us. If we have soldiers on site will I have to carry identification with me? This is my home. I just want a quiet life."

The weapons are capable of shooting down fast-moving aircraft and can counter "pop-up strikes" by helicopters, according to the MoD. A spokesman said fewer than 10 locations had been selected to host the missile batteries in areas around the Olympic Park. Not all were on residential buildings and no final decisions on locations had been taken.

"As announced before Christmas, ground-based air defence systems could be deployed as part of a multilayered air security plan for the Olympics, including fast jets and helicopters, which will protect the skies over London during the Games," the spokesman said.

"Based on military advice, we have identified a number of sites and, alongside colleagues from the Metropolitan police, are talking to local authorities and relevant landowners to help minimise the impact of any temporary deployments … However, no final decision on whether or not to deploy ground-based air defence systems for the Games has been taken."

"I am happy with it," said Stephen Taylor, 51, who lives in a flat beneath where the missiles would be positioned. "I think this place could be a target for terrorism during the Olympics and a military presence may deter an attack.

"I think people are getting their knickers in a twist. There's a 'meet the missiles men' meeting on Saturday and there will be a kneejerk reaction of nimbyism."