Phnom Penh has emerged as the fourth most expensive city in Southeast Asia according to Numbeo’s 2025 Cost of Living Index, highlighting a growing affordability crisis for local workers.
Singapore tops the regional rankings with an index of 79.1, followed by Phuket (38.1), Bangkok (37.1), and Phnom Penh (36.9). Phnom Penh outranks Manila, Kuala Lumpur, Ho Chi Minh City, Jakarta, and Hanoi in living costs.
Housing drives much of the expense, with one-bedroom city center apartments averaging USD 400 monthly. Restaurant meals cost around USD 3, while Phnom Penh’s rent index stands at 11.6, groceries at 43.9, and restaurant prices at 27.1.
External Drivers of Domestic Price Trends
Cambodia’s reliance on imports contributes significantly to higher living costs. Most consumer goods are imported and subject to VAT and special taxes, pushing prices up for basic necessities.
Foreign investment and increasing tourist arrivals continue pushing prices higher, creating pressure on middle-class and low-income populations in Cambodia’s rapidly developing capital.
Phnom Penh’s rise as the fourth most expensive city in ASEAN underscores both the momentum of its economic development and the underlying structural challenges it faces. While the trend signals opportunities in consumer goods and premium services, it also raises concerns about affordability, social inequality, and rising operational costs.
For foreign businesses and investors, success will depend on navigating these dynamics strategically, balancing growth ambitions with cost management, workforce retention, and inclusive approaches that align with long-term sustainability.
Source: Phnom Penh Ranks 4th Most Expensive ASEAN City | Khmer Times (khmertimeskh.com)