Agent based modelling has been widely accepted as a promising tool for urban planning purposes thanks to its capability to provide sophisticated insights into the social behaviours and the interdependencies that characterise urban systems. In this paper, we report on an agent based model, called TransMob, which explicitly simulates the mutual dynamics between demographic evolution, transport demands, housing needs and the eventual change in the average satisfaction of the residents of an urban area. The ability to reproduce such dynamics is a unique feature that has not been found in many of the like agent based models in the literature. TransMob, is constituted by six major modules: synthetic population, perceived liveability, travel diary assignment, traffic micro-simulator, residential location choice, and travel mode choice. TransMob is used to simulate the dynamics of a metropolitan area in South East of Sydney, Australia, in 2006 and 2011, with demographic evolution. The results are favourably compared against survey data for the area in 2011, therefore validating the capability of TransMob to reproduce the observed complexity of an urban area. We also report on the application of TransMob to simulate various hypothetical scenarios of urban planning policies. We conclude with discussions on current limitations of TransMob, which serve as suggestions for future developments.