Transit-Oriented Affordable Living
Malaysian Government Prioritizes Affordable Housing Redevelopment at LRT3 Park-and-Ride Sites
Key Points
Sri Andalas station’s 500-vehicle park-and-ride site is a primary redevelopment target to turn land now used for parking into integrated affordable housing and commercial space, with parking incorporated into basement levels to preserve mobility and unlock land value.
Redevelopment will be selective; not every station will be suitable for TOD due to existing surrounding development, with focus on stations that have sizeable parking and development potential.
Public-private partnerships on government-owned Prasarana land will drive the TOD push, delivering affordable housing near rail stations and generating development returns for the utility while keeping homes affordable.
Prime Minister Anwar Ibrahim has directed expedited planning and inter-ministerial coordination (Transport, Finance, Prasarana) with a clear emphasis on rakyat housing, while encouraging cooperation with state and local authorities to speed approvals and implementation.
Malaysia is turning parking lots into homes. On June 28, 2026, Transport Minister Anthony Loke announced plans to redevelop large park-and-ride sites along the newly launched LRT3 Shah Alam Line into affordable housing and commercial spaces, according to Malay Mail. Sri Andalas station's 500-vehicle surface lot is the first target, with basement parking set to replace it so the land above can be used for homes and shops.
The push comes hours after Prime Minister Anwar Ibrahim officially opened the 37.8km, RM16.63 billion LRT3 Shah Alam Line at Johan Setia Depot. Anwar ordered the Transport Ministry, Finance Ministry, and Prasarana Malaysia Berhad to speed up plans and work with state authorities. His message was blunt: "I do not think the focus here should be luxury housing... priority must be affordable housing," BusinessToday reported.
Sri Andalas Parking Lot Becomes a Housing Pilot
The Sri Andalas station car park currently holds 500 vehicles across a large surface lot. Loke called this an inefficient use of public land. "If we simply leave it as a car park, it would be an inefficient use of the land," he said, according to The Vibes. The plan is to move parking underground and build affordable homes and small commercial units on top. The government owns the land through Prasarana, which removes the need to acquire private property.
Not every station will be redeveloped. Loke said the focus will stay on stations with large parking areas and room to grow. Across the LRT3 line's six main park-and-ride stations — including Kayu Ara, Damansara Idaman, and Johan Setia — there are 2,300 parking bays in total, according to The Sun Malaysia. Stations already surrounded by dense development will be skipped for now.
Anwar Sets a 1.5-Month Approval Benchmark
Anwar wants these projects to move fast. He pointed to a past project that got full approvals in just 1.5 months instead of the usual 8 to 18 months. He is pushing for the same speed here. The Star reported that Anwar directed Prasarana to work closely with the Selangor state government, the Shah Alam City Council (MBSA), and the Klang Royal City Council (MBDK) to cut red tape.
Selangor Menteri Besar Amirudin Shari was told to coordinate directly with local councils to fast-track approvals, according to Scoop.my. The government plans to use public-private partnerships (PPPs) — deals where private developers build on Prasarana's land — to fund construction without spending public money upfront. Any returns from commercial units would help Prasarana cover its operating costs.
Experts Warn: Homes Only Work If the Train Does
Not everyone is fully sold. Wan Md Hazlin Agyl Wan Hassan, CEO of MY Mobility Vision, warns that cutting surface parking too soon could backfire. If the LRT3 has service disruptions, residents in these new homes would be "left without the promised alternative" and forced back into car ownership, he told The Sun Malaysia. Prasarana's reliability score stood at just 0.54 million mean kilometres between failures as of mid-2025, against a target of 1 million.
Associate Professor Keith Tan of Taylor's University offered a more positive view. He told FMT that building on surface lots is smarter and cheaper than building directly above rail tracks, which needs complex foundations. The TOD model — short for transit-oriented development, meaning homes and shops built close to train stations — works best when walking distance to a platform is under 10 minutes, he said.
Free Rides Launch as LRT3 Targets 117,000 Daily Riders
To get commuters on board, the government is offering free rides on the LRT3 for the entire month starting June 29, 2026. Feeder bus services will also be free during this period, according to Head Topics. The line is targeting 67,000 daily passengers in its first year. That figure is expected to climb to 117,708 within five years as surrounding areas develop.
The affordable housing units are expected to be priced at or below RM300,000, in line with other government-linked housing schemes, according to The Edge Malaysia. Small retail stalls for local businesses will be included in the ground-floor commercial areas. The goal is to let residents live, shop, and commute without needing a private car — cutting household costs and reducing road congestion in the Klang Valley.
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