When living in a high-density public housing, children, and physical activities might be an issue as the physical environment may inhibit their outdoor activities. The objective of this paper is to focus on the impact of the physical environment in public housing which affects the children’s physical activity inhibitive. The method employed is mainly through a literature review of published article and journal. There is four distinguished physical characteristic that highlighted in this paper. Poor safety, crowding, limited facilities and poor neighbourhood relationship prove to contribute less physical activities to the children.