The 12 Pleasant Road, Ferntree Gully, property fetched $2.037 million, the first time a residential dwelling has breached the $2 million mark in the City of Knox suburb.

The price was also $170,000 above the previous suburb record price of $1.867 million, held by 22 George Street that was sold by a Barry Plant agent.

Two buyers battled it to the end of the auction for the Pleasant Road house, and pushed the price $337,000 beyond the seller's dream price.

“We timed the auction at 6pm to capture the uninterrupted city views and amazing sunsets, and we were not disappointed,” Barry Plant Wantirna director and auctioneer Daniel Cripps said.

The lavish builder’s own home on 1415sq m was listed with $1.55-$1.705 million price hopes.

“We had eight registered bidders but several could not even put a bid in because it was hotly contested,” Mr Cripps added.

“It sold to a couple from Malvern who are actually downsizing from a massive house.”

The impressive result was well above expectations, as Mr Cripps felt it might have sold for around $1.8 million.

With its large range of properties on offer, Ferntree Gully is one of the busiest suburbs for home sales in the region, and is popular among first-home and family buyers.

The suburb’s median property price in the past 12 months ranged from $904,750 for houses to $680,000 for units, according to realestate.com.au.