According to the final results announced by the Electoral Commission on Saturday, the National Party, led by Prime Minister Bill English, took 44.4% of the vote in the September 23 election to win 56 seats -- two fewer than were indicated by preliminary results.
The opposition Labour Party, led by Jacinda Ardern, picked up one more seat than provisionally forecast to take 46 in total, with 36.9% of votes.
The final results take account of special votes -- ballots cast overseas or by those who enrolled and voted at the same time.
In the 120-seat parliament, 61 seats are needed for a ruling majority.
That means both leading parties are now courting the New Zealand First Party, which took nine seats, and the Green Party, which won eight, in earnest in hopes of forming a coalition government.
A coalition of National and New Zealand First would hold 65 seats, while if Labour can woo both New Zealand First and the Greens, that grouping could claim 63 seats.
Coalitions are nothing new for National, which has run a minority government since 2008.
The election was largely focused on the economy, with National attempting to highlight its positive record, while house prices were a key topic of attack for Labour.
Voter engagement was strong, with 79.8% of enrolled voters, or more than 2.5 million people, voting in the election. This was the highest turnout since 2005, according to Radio NZ.
CNN's Spencer Feingold and Tina Burnside contributed to this report.
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