The Real Estate Appraisal System was established due to social demands. In the late 1950s, Japanese economy expanded both in volume and quality, changing the economical structure of the society radically. It simultaneously resulted in an abrupt upheaval in real estate prices, burdening the economical activities of the people. To solve this problem, the Ministry of Construction set up a council concerning building sites systems . This resulted in the establishment of the REAL ESTATE APPRAISAL ACT which was passed in the 43rd national congress on July 6th 1963, issued July 16th as Act no.152. The act proclaimed the necessary requirements for LREAs and appraisal firms, in order to contribute to the formation of fair prices of real estates. In the following 1964, the first national examination for the qualification of LREAs was organized.

In 1964, to guide the activities of LREAs, the JAPANESE VALUATION STANDARDS (JVS) was established. It systematically incorporated both theory and practice of real estate appraisal. Later, JVS was wholly revised in 1969, and again in 1990 and 2002. The present JVS has enfolded new theories and current practices within its new standards.

Since the issue of LAND PRICE PUBLICATION ACT in June 1969, which was aimed for the rational formation of land prices, the government has tried to enforce its land policies and to maintain legal coherence, by instructing appraisal techniques to be applied in the formation of Public Land Prices, enforced through laws such as NATIONAL LAND USE ACT of June 1974, BASIC LAND ACT of December 1989, and Promotional Guideline of General Land Policies passed in the cabinet council of January 1991.

The Real Estate Appraisal System is now widely promoted, and is deeply associated with the economic activities of the people. It has an important function in society, and holds a large responsibility for the construction of a better society.