NSW Premier Gladys Berejiklian has weathered an election that pundits predicted would tip her coalition government into deep minority or opposition.

The coalition was left teetering one seat short of a majority on Saturday night, but will form government either in its own right or with the cross bench, with Labor in no position to win.

In a victory speech that read more like a thank you note, Ms Berejiklian told the crowd the Liberals would concede no seats lost on Saturday, though the ABC had called Coogee for the ALP.

She thanked staff, her family, and Liberal volunteers and members for their efforts during the election campaign.

A pumped-up Prime Minister Scott Morrison arrived at the Liberal election night party at the Sofitel to applause an hour after party elder John Howard, and addressed the crowd.

"How good is Gladys Berejiklian and how good is the Liberal Party here in NSW," he said.

Mr Morrison told the crowd the NSW Liberals were a great "advertisement" for the party brand, and promised to be back in Sydney celebrating in two months after the federal campaign.

Goulburn and Penrith had been tipped to fall into Labor's hands, but numbers suggest Ms Berejiklian's party will retain the battleground seats. The Liberal-held seat of East Hills was too close to call.

Their coalition partners weren't so lucky, with the Nationals losing Murray to the Shooters and likely also the vast western electorate of Barwon.

The election was called before the Sofitel Wentworth ballroom was even half full.

The crowd, dotted with blue campaign shirts, had been bracing to lose a string of Sydney seats, but grew more optimistic through the night, hugging, laughing and drinking.

Both Mr Morrison and Mr Howard made appearances during the campaign, but more of the credit was being place on Labor leader Michael Daley's terrible for final week.

One Liberal powerbroker was overheard joking, "Mr Daley, thank you for your service".

A loud cheer went up among the crowd as a TV bulletin flashed "Daley concedes".

Another cheer went up when Mr Daley said in his concession speech it was his intention to remain the leader of the Labor Party.

A Labor MP told AAP the election result was "beyond disappointing" and that it was up in the air as to whether Mr Daley retained the leadership.

A steady stream of party faithful poured congratulations over Ms Berejiklian's parents Krikor and Arsha, who were seated in the corner for most of the night.

Ms Berejiklian's sisters, Mary and Rita, were also mingling among the crowd.

Mr Daley's train wreck final week brought the contest back to where it had begun, one Liberal insider told AAP.

While Labor had made ground by doggedly pursuing the Allianz Stadium knockdown and threatening to fire shock jock Alan Jones through the middle of the campaign, the last week brought them full circle to the 52 day mark, he said.

Ms Berejiklian said she would work with the three independents - Wagga Wagga's Joe McGirr, Sydney's Alex Greenwich and Port Macquarie's Greg Piper - regardless of the result.

"Whether or not my government is a majority government or a minority government, we will work closely with the three independents that are elected to the NSW parliament," she said.

Australian Associated Press