Phnom Penh, Cambodia’s capital, has become the second most expensive city in Southeast Asia, just behind Singapore, according to Mercer's 2024 Cost of Living Survey. This shift highlights Phnom Penh’s rapid urban development and economic growth.

Traditionally seen as an affordable destination, Phnom Penh now ranks 123rd globally for expatriate living costs. Factors contributing to this rise include increased housing prices, consumer goods, and a growing demand for Western amenities.

Mercer’s survey evaluates costs like housing, transportation, food, and entertainment, guiding multinational companies and governments in managing expatriate expenses. Singapore maintains its position as the most expensive city in Southeast Asia and ranks second worldwide.

Other Southeast Asian cities such as Bangkok and Manila rank closely at 129 and 131, respectively, showcasing varied economic landscapes. This shift in Phnom Penh’s ranking may influence expatriate decisions and investment strategies, as the city continues to attract foreign direct investment and aims to balance development with living costs.