This study describes a research to improve understanding of sustainable urban transport planning from the perspective of Central Business District (CBD) redevelopment process for two cities, Hamilton and Christchurch in New Zealand. The study was initiated by prioritizing the type and location of new parking system to the existing CBD by attracting more visitors and patrons, which alters major and current urban transport issues. The concern of CBD traffic problems gained a majority among the others. This was further literature reviewed with other similar sized cities, which have established the ‘car-free zone’ to change CBD users’ travel behaviour. The literature review shows new aspects of the urban transportation network and explains the need for some particular changes of the sustainable transport for livable city life. The different forms of transport modes and urban planning were gathered from looking at the change made by many various cities. A major proportion of ‘car-free zone’ cities is the part of Europe territory, as the reason implies is limited space but higher population density. This scenario is somehow similar to NZ’s two cities as city’s population is on a drastic increase in proportion to the land size. Such studies, despite their importance, are relatively scarce due to issues related to data confidentiality and restraining local businesses from taking part in such studies. To achieve the objective, the study uses latent class (LC) modelling, which postulates that CBD patrons’ travel behaviour depends on two components: 1) some observable attributes, such as walking distance, parking fares and the use of shuttle service; and 2) unobserved latent heterogeneity. The latter is taken into account by sorting respondents into a number of classes based on similarities in their characteristics. Subsequently, the behaviour of respondents in each class is explained by a set of parameter estimates, which differs from the sets assigned to other classes. In this study, mixed logit (ML) and generalized mixed logit (GMXL) models were used to calculate the base mode shares, and subsequently, to test various hypothetical policy options for promoting greater use of new parking system and public transport. The data were gathered using stated preference surveys from 322 New Zealander resided in two cities. Furthermore, as each participant evaluated eight choice scenarios, the dataset contains 2,576 choice records. The results of the modelling allow policymakers to design more appropriate strategies and policies for different segments of the population to improve an urban CBD and to attract the largest latent class for both cases. In addition, the model indicates that the potential improvement in a modal shift, which can be achieved by applying different policy options, varies with both walking distance, parking rate and frequency of public transport service. Furthermore, in order to promote sustainable mobility in developing urban CBD, one policy would be to increase the connectivity of public transport services.