10 Enchanting Places to Live in Southeast Asia That Feel Like a Fairytale
If you’ve ever dreamed of waking up in a place that feels a little too magical to be real — where jungle-covered mountains surround your balcony, where street food tastes like a warm hug, where sunsets turn entire coastlines gold — Southeast Asia is where those dreams stop being Pinterest boards and start becoming daily life.
I’ve lived, worked, and wandered through this region for years, and honestly? Some towns here don’t just feel like places to live — they feel like real-life storybooks. Whether you’re a digital nomad, a retiree chasing warm weather, or someone craving a slower, soulful life, these 10 destinations offer beauty, affordability, and that “fairytale” atmosphere we all secretly want.
Let’s dive into the most enchanting places in Southeast Asia that you can actually call home in 2026.
1. Ubud, Bali — Indonesia’s Jungle Sanctuary
Ubud is the kind of place you move to when you want nature, spirituality, creativity, and comfort all in one bowl. It’s lush — like, ferns-growing-through-your-doorsteps lush — and the whole town smells faintly of incense and espresso.
Why it feels like a fairytale:
Because it’s essentially a magical jungle village where monkeys roam around temples older than entire countries.
Why people love living here:
- Affordable villas with private pools
- Countless yoga studios
- Healthy food cafés everywhere
- Easy community-building
- Slow, mindful lifestyle
Best for: Creatives, wellness lovers, remote workers, slow-living seekers.
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2. Hoi An, Vietnam — The Lantern-Lit Time Capsule
Hoi An is one of those places that looks Photoshopped even in real life. Ancient yellow shophouses, glowing lanterns swaying in the night, riverside cafés, tailors on every block, and a soft, nostalgic vibe that sneaks up on you.
Curious how this fits into a bigger trip? Check out our complete guide to Vietnam.
Why it feels like a fairytale:
Every night, the Old Town sparkles with hundreds of lanterns, lighting up the river in warm colors.
Why people love living here:
- Low cost of living
- High walkability
- Stunning beaches 10 minutes away
- Friendly, calm atmosphere
- Thriving expat community
Best for: Writers, couples, photographers, food lovers, remote workers.
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3. Chiang Mai, Thailand — Mountains, Temples & Quiet Magic
Chiang Mai is the opposite of Bangkok in all the best ways: peaceful, artistic, nature-driven, and ridiculously livable. Every morning feels cool and fresh, and temple bells ring in the distance like something out of a Studio Ghibli movie.
If this destination caught your eye, you’ll love our complete travel guide on Thailand for deeper insights.
Why it feels like a fairytale:
Over 300 temples, misty mountain views, markets filled with flowers, and a charming old city wrapped in ancient walls.
Why people love living here:
- Fast Wi-Fi (remote-worker heaven)
- Affordable apartments
- Cafés that feel like Pinterest boards
- Easy access to nature
- Friendly locals
Best for: Digital nomads, food lovers, long-term expats.
4. Luang Prabang, Laos — Serenity Carved Into a Mountain Valley
If peace had a physical form, it would look like Luang Prabang. With monasteries perched on hills, riverboats floating slowly down the Mekong, and mornings filled with the quiet footsteps of monks collecting alms, this place feels like an ancient poem you somehow get to live inside.
Why it feels like a fairytale:
Golden temples, waterfalls that look unreal, and a town that moves at a meditative pace.
Why people love living here:
- Affordable everything
- Deep cultural authenticity
- Inspiring landscapes
- Safe, warm community energy
Best for: Retirees, artists, nature lovers, and anyone tired of chaos.
5. Coron, Philippines — A Watercolor Dream for Ocean Lovers
Coron is what happens when nature decides to show off. Jagged limestone cliffs, turquoise lagoons you can see from the plane window, impossibly clear water… It’s as if someone painted the world in extra-saturated mode.
More interesting thing about Coron is its island huts. Are you curious? Read this guide in detail.
Why it feels like a fairytale:
The water is so blue it looks like you’re living inside a screensaver.
Why people love living here:
- Diving paradise
- Relaxed island lifestyle
- Affordable seafood
- Friendly Filipino warmth
- Never-ending boat trips
Best for: Divers, beach lovers, photographers, peace-seekers.
6. Penang, Malaysia — Culture, Color & Coastal Charm
Penang blends history, beaches, arts, cafés, skyscrapers, and temples — all on one island. George Town especially is a visual feast: colorful shophouses, street art popping out of every corner, markets full of spices and sweets… the kind of place that keeps surprising you no matter how long you stay.
Why it feels like a fairytale:
Because it’s a mix of old-world magic and modern comfort — vibrant, flavorful, and always buzzing gently.
Why people love living here:
- Delicious food (some say the best in Asia)
- Good healthcare
- Low cost of living
- Reliable public transport
- Strong expat community
Best for: Foodies, retirees, long-term expats, families.
7. Siargao, Philippines — The Island That Feels Like One Endless Summer
Siargao is the Philippines’ “cool kid” island — but in the most laid-back way possible. Think coconut tree forests, surf towns, jungle roads, tide pools, and cafés where no one is in a hurry.
Philippines has many other options, here is another beautiful destination. That is: Romblon.
Why it feels like a fairytale:
Palm trees everywhere, sunsets so pink they look fake, and beaches so quiet you can hear your own heartbeat.
Why people love living here:
- Surf culture
- Growing café scene
- Chill community
- Island simplicity
- Affordable rental homes
Best for: Surfers, creatives, slow-living lovers, young expats.
8. Kampot, Cambodia — Riverside Calm With a Rustic Glow
Kampot is one of the most underrated expat towns in Southeast Asia. It hugs a peaceful river, has misty mountains in the background, and gives off a rustic, “lost-in-time” charm that’s both soothing and addictive.
The ultimate guide to Cambodia is just a click away, check this out.
Why it feels like a fairytale:
It’s quiet, natural, and romantic — the kind of place where the sun sets in soft pastels over the river every night.
Why people love living here:
- Very affordable
- Relaxed lifestyle
- Cute cafés and riverside bars
- Easy motorbike loops
- Growing creative community
Best for: Artists, writers, budget expats, nature lovers.
9. Uluwatu, Bali — Clifftop Living With Endless Ocean Views
Uluwatu feels like a secret corner of Bali where cliffs drop dramatically into the ocean, temples sit on the edge of the world, and surfers glide into turquoise waves below. Living here feels like being inside a dramatic, sun-soaked paradise.
Why it feels like a fairytale:
The sunsets — honestly, I’ve never seen skies as fiery or as cinematic anywhere else in the world.
Why people love living here:
- Beach clubs overlooking the cliffs
- Big, airy villas
- Surf-friendly beaches
- Endless sunshine
- Healthy food scene
Best for: Surfers, couples, luxury-seeking expats, wanderers.
10. Baguio, Philippines — A Mountain City Wrapped in Pine Forests
Baguio is where the Philippines surprises you: instead of beaches, you get crisp mountain air, sweater weather, pine forests, and artsy cafés tucked between hillsides. It feels like the cool, poetic cousin in a family of tropical islands.
Why it feels like a fairytale:
Because it looks and feels like a mountain village out of a storybook — foggy mornings, serene forests, and cozy evenings.
Why people love living here:
- Cooler climate
- Safe and clean city
- Creative, youthful energy
- Lots of cafés and artist hubs
- Affordable living
Best for: Families, creatives, retirees, cool-weather lovers.
Final Thoughts: Where Will Your Fairytale Begin?
Southeast Asia isn’t just a region — it’s a whole mood. It’s color, warmth, nature, kindness, food, community, spirituality, and stories woven together into places that feel a little bit magical.
Whether you want a bustling cultural hub like Penang, a magical mountain retreat like Chiang Mai, or a tranquil waterside sanctuary like Luang Prabang, these 10 enchanting places offer the kind of life most people only dream about.And the best part?
You can actually live in them — comfortably, affordably, and beautifully.
