Despite National being in the box seat, Labour's campaign has brought pride back to the party and forced Bill English to take poverty seriously, Dunedin North MP David Clark says.
Labour has cruised home in both Dunedin electorates, comfortably turning around last election's party vote losses.
In Dunedin South with 100% of the vote counted Labour was on 47.5% and National 36.2%, with Labour MP Clare Curran on 18,674 votes compared to National candidate Matt Gregory's 11,236.
In Dunedin North with 100% of the vote counted Labour was on 47.7% to National's 28.2%, with Labour's Dr Clark on 18,037 votes to National list MP Michael Woodhouse's 8133.
Speaking at about 9pm Dr Clark told supporters it had been a "roller coaster campaign" and Jacinda Ardern had taken the party to new levels after previous leader Andrew Little set-up the party well for the campaign.
The maths still showed a Labour-led Government was possible, but National was in the box seat.
But Labour's campaign had changed the conversation "forever" and National leader Bill English was now promising to take children out of poverty.
People had "pride" in the Labour party again.
Ms Curran told supporters she was "very happy" with the local result.
Dunedin Hospital was the biggest issue in the Dunedin South electorate.
Results across the country were dissapointing, but she was pleased some electorate seats had changed hands.
There were big cheers at Vogel Street Kitchen as Labour supporters were told the party had increased its share of the vote compared to last election.
Speaking at National's campaign party in Dunedin at Wains Hotel, Mr Woodhouse pointed to Labour's resurgence and issues at Dunedin Hospital as the reasons why fewer people were voting for National in the city.
Despite National taking an early lead nationally there was not much of a party atmosphere at Wains Hotel and a relatively small number of supporters were there.
