Can you believe that Phnom Penh, Cambodia's capital, is now one of the second most expensive cities in Southeast Asia? According to the 2024 Cost of Living City Ranking, Phnom Penh has unexpectedly ranked as the second most expensive city in the region.
The Cambodian capital now outperforms other cities in the region and is second only to Singapore. This ranking also indicates significant improvements in Cambodia's standard of living and economic progress.
Once a budget-friendly destination in Southeast Asia, Phnom Penh is undergoing a remarkable rise in the cost of living. The city has now climbed to 123rd place as one of the most expensive places for expatriates to live.
The catalysts for this rise include rapid economic growth and swift development. Coupled with escalating housing prices and consumer goods, the burgeoning demand for Western-style amenities and lifestyles from the growing expatriate community has fueled the city's living costs.
Mercer's 2024 Cost of Living Survey highlights that Hong Kong continues to hold the title of the most expensive city in the world for expatriates, with Singapore securing the second spot. In Southeast Asia, Phnom Penh has made a notable leap, now ranking second in the region, outpacing cities like Bangkok, Manila, Jakarta, Hanoi, Ho Chi Minh City, Yangon, Kuala Lumpur, Vientiane, and Johor Bahru.
The 2024 Mercer Cost of Living Survey offers a thorough analysis of living expenses for expatriates across 226 cities worldwide. The survey examines over 200 expenditure items, including housing, transportation, food, clothing, household goods, and entertainment, to provide an in-depth understanding of the cost of living in each locale.
For multinational companies, this survey serves as an invaluable resource for determining equitable compensation and benefits for their expatriate employees. By considering a variety of factors that influence living costs, the survey ensures that expatriate employees can sustain a comparable lifestyle regardless of their assignment location.
