Victorians have "rejected the low road of fear and division" by voting Labor back into government, Premier Daniel Andrews says, as the Liberal-National Opposition wonders where it all went wrong in a state election some have described as a bloodbath.

Key points: Mr Andrews said Victorians had re-elected "the most progressive government in the nation"

Mr Andrews said Victorians had re-elected "the most progressive government in the nation" The Opposition Leader conceded it was a "stunning" night for Labor

The Opposition Leader conceded it was a "stunning" night for Labor Follow the full Victorian election results here

ABC election analyst Antony Green declared a Labor win within 90 minutes of counting getting underway.

At 9:00am (AEDT), the ABC's election computer was showing a 4.8 per cent swing to Labor, and forecasting 55 seats were likely to go its way in the 88-seat Lower House.

At Labor's election night function in Mulgrave, in Melbourne's south-east, the re-elected Premier told the party faithful that Victorians had "overwhelmingly endorsed a positive and optimistic plan for our state".

Labor supporters celebrate their crushing win at Mulgrave, in south-east Melbourne. ( AAP: Julian Smith )

"They have endorsed the removal of 75 level crossings," he said.

"They have endorsed the proper funding of our hospitals and schools. They have endorsed creating more jobs and funding TAFE properly.

"And they have have endorsed the biggest infrastructure agenda in road-and-rail in this state's great history.

"They have, in record numbers, at the same time, rejected the low road of fear and division.

"And for that, I am very, very proud."

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He declared his was the "most progressive Government in the nation".

Mr Andrews' party looked set to claim the eastern suburban seats of Box Hill, Burwood, Mount Waverley and Ringwood.

Even in blue-chip Brighton — which has never been won by Labor — 19-year-old university student Declan Martin gave a scare to Liberal candidate James Newbury.

In the bellwether "sandbelt" seats of south-eastern Melbourne, Labor enjoyed comfortable swings to hold Bentleigh, Carrum, Mordialloc and Frankston.

Those seats were seen as crucial to the result.

In the state's Upper House, the ABC's election computer calculated Labor would increase its numbers from 14 to 19, and the Greens faced the prospect of losing four of their five seats.

The Liberals' presence was forecast to shrink from 14 to 9.

The Derryn Hinch Justice Party could win as many as four seats, and the Animal Justice Party could win two.

Sorry, this video has expired Matthew Guy concedes defeat, saying Daniel Andrews had 'stunning night'

Disappointing night for Guy, Greens

Mr Guy conceded defeat just after 9:00pm and acknowledged the success and strength of Mr Andrews' campaign.

"Every day in opposition is a day closer to government and while tonight is not our night, we know that, we acknowledge that, we accept that, our time in the sun will come again," Mr Guy said.

He said the result might not be as bad for his Coalition as forecast.

"A lot of seats tonight, I've noted, are being written off or given away … without the counting of the early and pre-poll votes," he said.

"We expect a number of those seats to be retained by the party, but they in no way detract from the result our opponents had tonight."

The Greens were looking unlikely to add to their three Lower House seats of Prahran, Northcote and Melbourne — and could even lose one.

Northcote looked set to go down to the wire, with incumbent Lidia Thorpe trailing Labor's Kat Theophanous.

Before the election, the Greens had hoped to pick up seats in the Lower House and had targeted Albert Park, Richmond and Brunswick.

But swings to Labor were recorded in Albert Park and Richmond, while the swing to the Greens in Brunswick appeared insufficient for Greens candidate Tim Read to win.

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In Mildura, in the state's north-west, Nationals incumbent Peter Crisp, who held an 8 per cent margin, was trailing independent Ali Cupper.

But two other regional Coalition MPs appeared likely to withstand challenges from independents.

In the seat of Ovens Valley in the state's north-east, Nationals MP Tim McCurdy was ahead of independent Tammy Atkins and Labor's Kate Doyle.

In Benambra, also in the north-east, Liberal Bill Tilley was leading independent Jacqui Hawkins by less than 2 per cent.

'Looking like a bloodbath'

Green said the swings to Labor in Melbourne's east were reminiscent of John Cain's 1982 election win, when the ALP returned to government for the first time in 27 years.

"The swings in eastern Melbourne are consistent and very strong," Green said.

Labor Health Minister Jill Hennessy said the result was "looking like a bloodbath".

"I am surprised at the degree of the swing out in the eastern suburbs," she said.

"We're also hearing some very positive news around some of the swings in both Bass and in Ripon.

"But the swing in the east, the swing in Bentleigh, the swings we're seeing along our sandbelt seats, are probably more pleasant news than I might have been expecting at this point of time.

"We have not really held a lot of seats other than Monbulk out in the east.

"To see this happening is quite extraordinary."

The results were difficult for Liberal supporters to watch at the party's official function. ( ABC News: Danielle Bonica )

As the extent of the Coalition's loss became clear, former Liberal premier Jeff Kennett attacked the party's Victorian president Michael Kroger.

"I will say this — if there's one person who should stand down tonight it is Michael Kroger," he told Channel Seven.

"And he should stand down before the clock strikes 12.

"Because I think his leadership of the party over recent times has been appalling.

"Michael, if you're listening, it's 8:20, by midnight I hope your resignation is on the floor."