How Much Does It Cost to Live in Phnom Penh, Cambodia, in 2024?

How Much Does It Cost to Live in Phnom Penh, Cambodia, in 2024? A Comprehensive Guide.

About Phnom Penh

Phnom Penh, the capital city of Cambodia, is a dynamic hub that offers a unique blend of tradition and modernity. It is increasingly becoming a popular destination for expatriates, digital nomads, and retirees due to its affordable cost of living, cultural richness, and developing infrastructure.

Phnom Penh, the bustling capital of Cambodia, is a city steeped in history and culture. Founded in the 15th century, Phnom Penh has evolved from a quaint riverside village into a vibrant metropolis. Known as the “Pearl of Asia” in the early 20th century due to its beautiful architecture and strategic location along the Mekong River, Phnom Penh has witnessed significant changes over the decades, from the days of French colonialism to its rapid modern development.

As of 2024, Phnom Penh’s population has grown to over 2.3 million residents, making it the most populous city in Cambodia. Spanning an area of approximately 679 square kilometers, Phnom Penh offers a mix of lifestyles, blending traditional Cambodian customs with a fast-paced, urban lifestyle. The city is a hub of cultural and economic activities, attracting both locals and expatriates who are drawn to its dynamic environment, affordable living, and expanding opportunities.

The lifestyle in Phnom Penh is diverse, offering a range of experiences from bustling local markets and street food vendors to luxurious malls and international cuisine. The city is home to a growing number of expatriates, retirees, and digital nomads who appreciate its affordable cost of living and welcoming atmosphere. Despite its rapid development, Phnom Penh retains a laid-back charm, where one can explore ancient temples and bustling riverside promenades within the same day.

Safety and security in Phnom Penh have seen significant improvements in recent years. While petty crimes such as pickpocketing can occur, especially in crowded areas, overall crime rates are relatively low compared to other major Southeast Asian cities. The local police and private security services are present throughout the city, contributing to a safer environment for both residents and visitors.

Traffic and transportation in Phnom Penh, however, can be challenging. The city’s roads are often congested, especially during peak hours, due to the growing number of vehicles and a lack of comprehensive public transportation. Motorbikes, tuk-tuks, and cars dominate the streets, creating a chaotic but vibrant urban landscape. Recent developments, such as the introduction of a public bus system and ride-hailing apps like Grab and PassApp, have provided more options for getting around the city.

As Phnom Penh continues to grow and modernize, it remains a city of contrasts—where traditional meets modern, and simplicity meets sophistication. Whether you are a potential expat, a digital nomad, or someone simply curious about life in Cambodia’s capital, understanding the cost of living in Phnom Penh in 2024 will help you plan your journey to this fascinating city.

But how much does it cost to live in Phnom Penh in 2024? Let’s break down the various expenses you might encounter if you plan to live in this bustling city.

1. Housing Costs

Housing in Phnom Penh can vary significantly depending on the location, type of accommodation, and the level of luxury you are seeking. Here’s a general breakdown of housing costs:

• Apartments: A one-bedroom apartment in the city center can cost between $400 to $800 per month. Outside the city center, prices drop to around $250 to $500 per month. For those looking for a bit more space, a three-bedroom apartment in the city center ranges from $800 to $1,500, while outside the city center, it could be between $600 to $1,000.
• Villas and Houses: For larger families or those looking for more luxurious accommodations, renting a villa or a house can range from $1,500 to $5,000 per month depending on the size, location, and amenities.
• Utilities: Monthly utility bills, including electricity, water, garbage, and internet, typically range from $100 to $250. Electricity can be the most significant variable, especially if air conditioning is used frequently.

2. Food and Groceries

Phnom Penh offers a wide variety of dining options, from local street food to high-end international cuisine. Here’s what you can expect:

• Eating Out: A meal at a local Cambodian restaurant can cost as little as $2 to $5, while dining at a mid-range restaurant might cost around $10 to $20 per person. High-end restaurants and international cuisine can cost upwards of $50 per person.
• Groceries: For those who prefer to cook at home, groceries can be quite affordable. A week’s worth of groceries for one person can range from $25 to $50, depending on dietary preferences. Imported goods are generally more expensive, while local produce, rice, and meats are very affordable.
• Street Food: If you are a fan of street food, Phnom Penh is a paradise. A street food meal can cost between $1 to $3, making it a popular choice for both locals and expats.

3. Transportation

Transportation in Phnom Penh has seen improvements over the years, with various options available for getting around the city:

• Public Transport: Phnom Penh recently introduced a public bus system, with fares as low as $0.40 per ride. Although the network is expanding, it is not yet comprehensive.
• Motorbike Rentals: Renting a motorbike can cost about $50 to $100 per month, depending on the type of bike. This is a popular choice among expats for its convenience and affordability.
• Tuk-tuks and Ride-Hailing: Tuk-tuks are a common mode of transportation, with fares ranging from $1 to $5 depending on the distance. Ride-hailing apps like Grab and PassApp offer fixed prices and are becoming more popular for their ease of use and reliability.
• Cars: Owning a car is relatively expensive due to high import taxes. Purchasing a new mid-range car can cost between $25,000 to $40,000. Monthly expenses for fuel, insurance, and maintenance can add another $200 to $500.

4. Healthcare Costs

Healthcare in Phnom Penh has improved significantly, with several international-standard hospitals and clinics now available:

• Public Healthcare: Public healthcare is available but is often considered of lower quality compared to private facilities. Most expatriates and middle-class locals opt for private healthcare.
• Private Healthcare: Consultation fees at private clinics range from $30 to $80. Health insurance is strongly recommended and can cost between $500 to $1,500 annually, depending on the coverage.
• Pharmacy and Medications: Medications are widely available in Phnom Penh, with costs varying depending on whether the drug is imported or locally produced.

5. Education

For those moving with families, education is a significant consideration:

• International Schools: Tuition fees for international schools can be quite high, ranging from $5,000 to $20,000 per year. Some of the top international schools in Phnom Penh include the International School of Phnom Penh (ISPP) and Northbridge International School Cambodia (NISC).
• Local Schools: Local schools are significantly cheaper, but the quality and language of instruction may not meet the expectations of some expatriate families.

6. Entertainment and Leisure

Phnom Penh offers a variety of entertainment and leisure activities to suit different tastes:

• Gyms and Fitness: Gym memberships in Phnom Penh can range from $30 to $100 per month, depending on the facility and services offered. Some gyms offer additional services such as swimming pools, fitness classes, and personal training.
• Nightlife: Phnom Penh has a vibrant nightlife scene, with bars, clubs, and pubs offering drinks for around $2 to $5. High-end cocktail bars and lounges may charge more.
• Cultural Activities: Entrance fees to museums and cultural sites are quite affordable, usually ranging from $1 to $10. Cinemas charge around $5 to $8 for a ticket.
• Sports and Outdoor Activities: Activities like yoga classes, tennis, or renting bicycles are also quite affordable, with prices ranging from $5 to $20 per session or rental.

7. Miscellaneous Expenses

Other expenses that could add up include:

• Clothing: Shopping for clothes in Phnom Penh can be cheap, especially if you buy from local markets. Branded items and imported goods will cost more.
• Mobile and Internet: Mobile phone plans are very affordable, with packages costing around $5 to $10 per month for calls and data. Internet plans can range from $15 to $30 per month, depending on speed and provider.
• Household Goods: Cleaning supplies, personal care products, and other household goods can vary in price, but a monthly budget of $20 to $50 should suffice for most households.

8. Living a Luxury Lifestyle

For those looking to indulge in a more luxurious lifestyle, Phnom Penh has plenty to offer:

• High-End Dining: Dining at high-end restaurants or enjoying fine dining experiences can cost $50 to $100 per person or more.
• Spa and Wellness: A visit to a high-end spa for massages, facials, and other treatments can range from $30 to $150, depending on the services chosen.
• Shopping: Phnom Penh has a growing number of luxury boutiques and malls. Shopping for international brands will naturally be more expensive, with prices comparable to those in Western countries.

9. Cost of Living for Digital Nomads

Phnom Penh is becoming an increasingly popular destination for digital nomads due to its affordability and improving internet infrastructure:

• Co-Working Spaces: Co-working spaces in Phnom Penh charge between $50 to $200 per month, depending on the location and services provided.
• Digital Nomad-Friendly Cafes: Many cafes offer free Wi-Fi and a quiet atmosphere, making them great spots for remote work. The average cost of a coffee in such places is around $2 to $4.

10. Cost Comparison with Other Cities in Southeast Asia

To put Phnom Penh’s cost of living into perspective, let’s compare it with other major cities in Southeast Asia:

• Bangkok, Thailand: While Bangkok is also affordable, the cost of living is generally higher than in Phnom Penh, especially in terms of housing and dining out.
• Ho Chi Minh City, Vietnam: Ho Chi Minh City is quite comparable to Phnom Penh in terms of cost, although some aspects, like transportation and groceries, might be slightly cheaper in Vietnam.
• Kuala Lumpur, Malaysia: Kuala Lumpur tends to be more expensive than Phnom Penh, particularly for housing and entertainment, although it offers more developed infrastructure.
• Manila, Philippines: The cost of living in Manila is generally higher than in Phnom Penh, especially in terms of housing and utilities.

11. Inflation and Future Trends

Inflation rates in Cambodia have been relatively stable, but like any developing country, they are subject to change due to various economic factors. As of 2024, it is expected that inflation will lead to a gradual increase in costs across all sectors, but the overall cost of living in Phnom Penh will remain more affordable compared to many Western countries and major Asian cities.

Conclusion

Living in Phnom Penh, Cambodia, in 2024 offers a unique blend of affordability and quality of life. From affordable housing and diverse dining options to an improving healthcare system and vibrant social scene, Phnom Penh is becoming an attractive option for expatriates, retirees, and digital nomads alike.

However, living costs can vary greatly depending on lifestyle choices and preferences. Whether you choose a more modest lifestyle or opt for luxury, Phnom Penh can accommodate a wide range of budgets.

What do you think about the cost of living in Phnom Penh? Are there any costs you think should be included in this guide? Share your thoughts and experiences in the comments below!