National Party leader John Key promised to serve the interests of all New Zealanders after his party's emphatic win in the 2011 general election.
"New Zealand has voted for a brighter future, and there will be a brighter future," Mr Key said in his victory speech at Sky City in Auckland.
The National Party secured 48% of the vote and gained 60 seats in Parliament.
New Zealand First returns to Parliament after a three year absence, and the Green Party's vote has surged.
Mr Key said he would continue to lead a government, as he had done for the last three years, which serves the interests of all New Zealand.
The result does not give National enough seats to govern alone.
ACT and United Future will have one seat each in Parliament and Mr Key said he would be working on formal agreements with both parties.
"I also spoke to Maori Party co-leader Tariana Turia and we're keen that both the Maori Party and National Party are part of a government over the next three years."
Mr Key ended his speech by saying he was heading off for something "a little bit stronger than a cup of tea" - a reference to the controversy in which his conversation with ACT's John Banks at an Auckland cafe was recorded by a cameraman without their knowledge.
Labour's share of the vote dropped to 27%, giving it 34 seats. In the last Parliament it had 43 seats.
The Green Party had their best ever result, winning just over 10% of the party vote, which gives them 13 MPs.
New Zealand First, with almost 7% of the party vote, has eight MPs.
ACT candidate John Banks won the Epsom electorate but the party's 1% of the party vote did not entitle it to bring in any more MPs. Party leader Don Brash resigned the leadership saying he took full responsibility for the party's poor performance.
Mana Party leader Hone Harawira returns to Parliament while the Maori Party has three seats, one fewer than in the previous Parliament.
In its first election, the Conservative Party secured more party votes than rival minor parties. However, without winning an electorate, its 2.7% of the vote was not enough to be represented in Parliament.
Not our time, says Goff
Labour Party leader Phil Goff conceded defeat in a speech to party faithful in his Mount Roskill electorate.
He said while it was not Labour's night, the party would not give up the fight against things such as asset sales.
"Our time will come again and we will be ready to take New Zealand forward," he said.
Mr Goff said he phoned John Key after it became apparent the National Party would win the election and wished him well for the next three years.
"Because we are all New Zealanders, and we want to see our country do well."
Mr Goff said he had taken a clear decision about his future but wanted to talk to his caucus before making any further comment.
Earlier, Labour's David Parker said if Labour did lose it could still form a very strong opposition.
Labour Party president Moira Coatsworth said history indicated the party would struggle to win.
"There hasn't ever been a one-term National government. But we actually are very pleased with the campaign that we've run, so let's wait for the result," she said.
