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After his NSW election win, Premier-elect Chris Minns faces a new test as Labor gets ready to govern

Chris Minns claims victory in NSW election

With a NSW state election win behind him, Labor leader Chris Minns wakes to a new challenge this morning — selecting his new ministry and shifting gears into governing. 

The campaign has been hailed as a "model of respect and civility" and "a race to the top" as Labor prepares to return to power after 12 years.

The ABC is predicting the party will govern in majority, with a statewide swing of more than 7 per cent. It will hold at least 47 seats in the 93-member lower house, picking up at least nine seats from the Coalition.

Labor's gains included key seats in Western Sydney, including Parramatta and Penrith.

Mr Minns declared NSW residents had voted for "a fresh start" as he addressed the party faithful on Saturday night.

"I think it's undeniably the case that this election campaign, perhaps uniquely, was a model of respect and civility," he said.

"Neither party took the low road. Neither political party took the low blow."

Mr Minns says the campaign was a race to the top. (ABC News: Harriet Tatham)

Mr Minns said the campaign could be a model for the way democracy takes place across the country.

Outgoing premier Dominic Perrottet offered similar observations during his own speech after calling Mr Minns to congratulate him.

"Elections can get ugly, but I believe this election truly was a race to the top," Mr Perrottet said.

"A genuine battle of ideas — and that's when politics is at its best."

Incoming NSW premier Chris Minns speaks to the media on Sunday following Labor's election win. (AAP: Dean Lewins)

Mr Perrottet said the nature of the campaign was in many ways due to the way his opponent carried himself, urging NSW residents of all political persuasions to "get behind" the premier-elect.

"When New South Wales goes well, our country goes well. That is something tonight I believe we can all unite behind."

Retiring transport minister David Elliott was among senior Liberals to express shock at early results, when several "reasonably safe" Liberal seats were conceded.

He told Channel Seven that Mr Perrottet, who is standing down as the party's leader, was "let down" by some around him who "should have known better".

Former premier Mike Baird suggested Mr Perrottet had "fought this battle with two hands tied behind his back".

"The Liberal Party has let down Dom," he told Channel Nine.

Mr Perrottet acknowledged the party needed its own "fresh start" during his speech, announcing he would stand down as Liberal leader before outlining what he saw as the "legacy" it leaves from its 12 years in power.

Mr Perrottet announced he would be stepping down as party leader. (AAP: James Gourley)

He said this included "the biggest building agenda since Federation": metros, motorways, schools, hospitals, museums and stadiums befitting a world-class city.

"New South Wales is a much better place today than it was 12 years ago," Mr Perrottet said.

Treasurer Matt Kean, immediately after his leader's speech, told ABC News that it was too early to discuss a replacement, although he is considered to be a front runner. 

Mr Minns saw the result as a decisive vote against privatisation, and for the removal of unfair wages.

"We will govern for everyone in New South Wales," he said.

Counting will continue on Monday.

Dominic Perrottet concedes defeat in NSW election
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