Nature-Based Development: Commercial Returns Meet Environmental Impact

Australian property developers are discovering a powerful truth: integrating nature into developments delivers substantial financial returns while creating meaningful environmental benefits. As global projects demonstrate impressive commercial performance, Australia has an opportunity to capitalize on this proven strategy.

The Commercial Case: Proven Market Premiums
International developments showcase the financial potential of nature-based design. Lendlease’s Elephant Park in London, featuring over 1,000 trees and 4.45 hectares of green space, achieved a remarkable 188% price premium over the surrounding Elephant & Castle area. This isn’t an isolated success—comprehensive research reveals consistent market advantages across multiple developments.

Australian Market Data:
• Park-front apartments command 17% price premiums on average
• Park-front houses achieve 34% price premiums compared to surrounding properties
• Melbourne case studies show rental premiums up to 49% and capital growth reaching 18% per annum
• Units facing internal green spaces consistently sell before those without nature views

These premiums translate into accelerated sales cycles and improved project viability. Developers report that nature-based features not only drive marketing appeal but also facilitate smoother planning approvals and contribute to green building certifications.

Environmental Returns: Quantifiable Impact
Beyond commercial benefits, nature-based developments deliver measurable environmental improvements that enhance urban resilience and resident wellbeing.

Climate Resilience:
• Strategic vegetation reduces temperatures by up to 6°C during extreme heat events
• Rain gardens and permeable surfaces redirect stormwater, reducing pressure on urban infrastructure
• Earl’s Court in London targets 85% biodiversity net gain while allowing 60% of stormwater runoff to soak directly into the ground

Air Quality and Acoustic Benefits:
• Dense vegetation removes pollutants and particles from urban environments
• Properly designed green barriers reduce traffic noise by up to 10 decibels
• Natural air cleaning systems provide ongoing environmental services without operational costs

Biodiversity Enhancement:
• Habitat creation supports vulnerable urban wildlife species
• Native plantings and diverse understorey provide ecological corridors
• Wildlife habitat boxes and water sources create functioning urban ecosystems

The Australian Opportunity
Current Australian environmental rating systems lag international standards—developers can achieve 6-star Green Star ratings without including any landscape elements. This represents both a challenge and an opportunity for forward-thinking developers.
The Nature Based Cities framework, pioneered by projects like the $400-million Scotch Hill Gardens development, provides practical tools for implementation. The 300-apartment project demonstrates the approach by retaining 77 mature trees while adding 151 new trees across its 1.62-hectare site, creating habitat for local wildlife while maximizing commercial potential.

Strategic Implementation
Successful nature-based developments require early planning and integrated design. Unlike traditional assessment tools that evaluate completed designs, the Nature Based Cities scorecard allows developers to set targets from project inception, ensuring nature integration becomes a design driver rather than an afterthought.
Government agencies are responding positively to this framework, with the Green Building Council of Australia now offering additional Green Star points for developments using the Nature Based Cities scorecard. This regulatory support creates additional commercial incentives for adoption.

The Bottom Line
Nature-based development represents a convergence of commercial success and environmental responsibility. Projects that integrate meaningful green infrastructure consistently outperform conventional developments in sales velocity, price premiums, and long-term value retention while delivering quantifiable environmental benefits.
For Australian developers, the choice is clear: embrace proven strategies that deliver both profit and environmental impact, or risk falling behind in an increasingly competitive and environmentally conscious market. The tools and evidence exist—the question is whether the industry will capitalize on this opportunity to lead rather than follow global trends.

Contact us now for ideas on greening up your facility.