I think the suggestion is taking the reference out of context. 12 Kingdoms has the different reference. It is reference for "green penthouse", or "green house" in Japanese. It is a building with more than one story, and the building is painted in green. It was used to address a living space of wealthy family. It was also used to address the beauty living in the building, such as poetry. It was the original meaning. The meaning had changed once someone used it to address the girls in "green house". It was an euphomism, but the usage stayed. So, it's kind offensive to call someone's home as "green house". Besides, the kanji in use is actually blue(aoi). In Japanese, the "green house" is actually "blue house"(seiro). Kanade used the word green(midori).
Quote:
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Originally Posted by seiro
せい‐ろう【青楼】
《昔、中国で青漆を塗ったところから》
１ 高貴な人や美女の住む家。
２ 遊女屋。妓楼(ぎろう)。江戸では特に、官許の吉原遊郭をさした。
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So, you see. Green in Chinese is actually blue in Kanji.