He was driving a silver Toyota Supra that crashed on the Monaghan Road at around 10.40pm on Monday.
It is understood that he died at the scene.
The road was closed for a time between the Madden Road and Fernaloy Road but has since reopened.
SDLP Councillor Gerald Mallon has expressed his shock and sadness at the death.
He described the young man as "very popular and well respected."
"The days and weeks ahead are going to be extremely difficult for his extended family and young friends and my thoughts, prayers and indeed those of the entire community are with them at this very difficult time," he added.
"This is the second tragic accident in the wider area within days and I would appeal to all motorists, young and old alike to take extra care on our roads."
Cathal Boylan, Sinn Féin MLA for Newry and Armagh, said: "My thoughts and prayers are with the family and friends of this young gentleman who lost his life in such tragic circumstances."
Police have appealed to anyone who saw the collision to contact them.