Chris Minns says New South Wales has voted "for a fresh start" after guiding Labor to election victory, with a majority government likely.

The incoming premier made his way through a heaving, chanting crowd, and was joined onstage at his victory party in Sydney by his family, and Prime Minister Anthony Albanese. 

Mr Albanese said Mr Minns was "a leader whose vision is one that always has people at its heart".

Mr Minns said people in New South Wales had granted his government a positive vote, "and not just a negative vote against the government".

"The people of New South Wales have voted for a fresh start.

He praised the way the campaign was run on both sides, as "a model of respect and civility".

"Neither political party took the low blow."

"And I'm proud to say today the people of New South Wales voted for the removal of the unfair wages.

"They voted for our nurses, our teachers. They voted for our paramedics and police.

"It is undeniably the case that today's election was also a decisive vote against privatisation.

Mr Minns led his party to an election win after 12 years in opposition.

Labor will hold at least 47 seats in the 93 member lower house, and is only the third time since World War II that the party has gone from opposition into government in NSW.

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Outgoing premier Dominic Perrottet looked emotional before addressing the party faithful, including former prime minister John Howard, at the Liberal Party headquarters at the Sofitel Hotel in Sydney. 

He confirmed it was "very clear" the party needed a "fresh start" and that he would be standing down as the leader of his party. 

He also congratulated Mr Minns on a positive election campaign, that "truly was a race to the top".

"A genuine, battle of ideas, and that is when politics is at its best.

"And that is why I truly believe and have no doubt that he will make a fine 47th premier of New South Wales."

Labor has picked up at least nine seats from the Coalition, including key seats in Western Sydney like Parramatta and Penrith, as well as the regional seats of South Coast and Monaro.

After the Coalition conceded they would lose formerly Liberal-held seats of Parramatta and South Coast, the numbers proved they could not form a majority government. 

However, some seats are still in doubt and won't be decided until next week, with counting to resume on Monday. 

Labor is currently ahead in the electorates of Goulburn, Holsworthy, Kiama, and Oatley, while Miranda, Pittwater, and Winston Hills are leaning towards Liberal. 

Independents candidates are leading the way in Wollondilly, and Willoughby. 

Former NSW Liberal premier Mike Baird said communities had been taken for granted, and Mr Perrottet was hampered by his own colleagues. 

"He has fought this battle with two hands tied behind his back," he said. 

"The Liberal Party has let down Dom."

Treasurer Matt Kean earlier in the evening conceded it was a tough uphill battle to win four terms in a row, "like fighting gravity".

"The deck is stacked against us here. It is going to be Mount Everest," he told the ABC.

Outgoing Transport Minister David Elliott said he was shocked they lost the South Coast seat to Liza Butler.

"It just appears that the vote couldn't hold up with a new candidate and we're likely to lose that with a significant swing against us."

Mr Elliott said amid the inevitable post-election review, the party needed to find candidates for the next election immediately.

"We have to find an opposition leader that's going to hold Labor to account, and we have to start the fight tomorrow.

"Personally, I would be talking to people about putting Kellie Sloane straight into it.

"She's got the communication skills, she's got the appeal to be the premier of NSW."

The Greens' function at the Annandale Hotel rung out with cheers as Jenny Leong unsurprisingly claimed victory in Newtown. 

An anxious wait continues in the Greens-held Balmain, following the retirement of sitting member Jamie Parker, leading to a swing so far to Labor candidate Philippa Scott. 

"It's looking pretty tight on all fronts," she said. 

This year a record number of postal votes were cast, with 1,566,493 early votes already cast.