With the aim of analyzing the transformation process from obsolete industrial area to residential area, finding out factors that play biggest parts and providing insight as well as giving advice to the Noord-‐Brabant government, a simulation analysis based on existing researches and statistics using System Dynamics modeling method is conducted. The result shows that though all the three governmental strategies: financial funding, liability reduction and procedure simplification have effects on improving the chance of transformation, among the three, simplifying the procedure of handling related applications and shortening the response time is the most effective one. Despite the terrain limitation, the analysis tool can be served as a general analyzing tool for ant areas as long as there is data available. The research reaches to a depth in the current field of sustainable development of urban land use planning, contributes to the development of smart cities and improvement of spatial quality and provides insights for all municipalities that are looking for ways to deal with over-‐stock industrial area or industrial sites obsolescence. The simulation model helps both public authorities and private developers in deciding an appropriate strategy or selecting a proper project depends on their own specific situations and can serve as a new platform for negotiation between the two players.