Niseko Real Estate Market Shows Little Concern Following Steam Eruption

Despite early concerns, a steam eruption at a pilot geothermal energy project in nearby Rankoshi has not worried Niseko investors.

The eruption at the Mitsui Oil Exploration Co. (MOECO) Rankoshi Geothermal Research Area began on June 29 and continued till its successful steam-suppression plugging on 28 August.

Elevated levels of arsenic and hydrogen sulphide from the eruption entered local waterways and caused concern for farmers in Rankoshi.

Apart from early concern of what the potential fallout might, there was little impact on the Niseko community and real estate market.

Of the eight greater Niseko area real estate professionals representing six companies contacted for this article, all of them reported little to no effect on their sales and volume.

Masahito Kato, President & CEO of Annupuri Properties, said that he believes the geothermal issue was now “fortunately contained“ and wouldn’t have any impact on the real estate market, except for potentially areas of Rankoshi directly impacted by the eruption.

MOECO has been holding public briefings for greater Niseko area residents, as well as releasing documents detailing how the steam suppression operation was conducted.

The latest meeting was on Wednesday 6 September at Rankoshi’s Mountain Village Development Center.

H2 Christie’s International Real Estate Sales Director Paul Butkovich said there hadn’t been any significant impact on the real estate market, partly because the project site was relatively isolated and removed from the resort area.

There has been a slight impact on hotel bookings, mostly from guests concerned about specific outdoor activities, like rafting on the Shiribetsu River.

Park Hyatt Niseko Hanazono Director of Sales and Marketing Ronald Nomura said that the hotel has had two existing reservations cancelled due to steam eruption concerns.

While it is harder to tell what effect the steam eruption may be having on new bookings, Nomura san said that the reservation rate has remained as expected, so any effect is minimal.

“Overall, there was very little concern from our guests.”

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