Former treasurer Josh Frydenberg has conceded defeat in the electorate of Kooyong in a video statement posted to his social media accounts.
"Today I rang Dr Monique Ryan to congratulate her on the election result in Kooyong and wished her well for the term ahead," he said.
He said it was a "privilege" to serve the inner-Melbourne electorate for the past 12 years, and thanked the local community for "their support and friendship".
"I look forward to spending more time with my family," he said.
Mr Frydenberg saw a swing of more than 10 per cent against him on a two-party preferred basis in the electorate.
The loss marks the first time the seat has left Liberal hands since the party's inception in 1944, after previously being held by party leaders Robert Menzies and Andrew Peacock.
The former treasurer refused to concede the seat on Sunday, initially opting to wait for an estimated 16,000 postal votes to be counted.
In Victoria, the seats of Deakin and Macnamara remain in doubt as counting continues.
The ABC has predicted the Liberal Party will now retain the seat of Menzies, with Keith Wolahan trumping Labor's Naomi Oakley.
Independent Monique Ryan 'grateful' for concession
Incoming member Dr Ryan is one of 23 "teal" independents backed by a combination of grassroots support and the Climate 200 group.
Dr Ryan told ABC Melbourne radio she was out in public when she received a call confirming her victory from Mr Frydenberg.
"It was respectful. Mr Frydenberg and I have waged a fairly willing campaign over the last few months, but it was nice to have received the call. I was grateful to him for calling me," Dr Ryan said.
It brings an end to a tense election battle in the seat of Kooyong that saw tempers flare between the candidates.
Dr Ryan criticised Mr Frydenberg during the election campaign after he publicly recounted a conversation with Dr Ryan's mother-in-law, who revealed she would be voting for the Liberal party and not her daughter-in-law.
Mr Frydenberg's re-election campaign was also hampered by controversy, with Guide Dogs chief executive Karen Hayes stood down from her role after distributing pamphlets endorsing him.
Dr Ryan attributed her win in Kooyong to changing demographics in the electorate, along with Mr Frydenberg's comments during the pandemic.
"The representative that they had was no longer reflecting their values, and that's why the people of Kooyong have looked elsewhere," she said.
"People were angry with Mr Frydenberg for the way that he spoke about Victoria during lockdown, and I don't think that he recognised the extent to which that stayed in their minds."
