The victim, believed to be in his 50s, was shot at Ardcarn Park in the city around 6pm yesterday, with police later confirming the victim was pronounced dead at the scene.
A security source said that a number of shots were fired.
It’s believed the victim’s body was found on the ground behind his car.
Ardcarn Park was last night closed to both motorists and pedestrians.
Local SDLP councillor Michael Savage said the city will be left in shock at the murder.
Mr Savage said it looked like the victim was “targeted” and condemned those responsible.
“Our city is full of good people who have no wish to see fear brought back onto their streets, and this is fear bring brought back to our streets,” he added.
“People living in that area would have been arriving home from work, coming home with children, and I’m disgusted that this would happen.
“This fear needs to be removed from our society.
“Those who are behind this should know they are not wanted. No-one wants to see this brought to our streets.
“My thoughts and prayers are obviously with the family of the man who has lost his life, but also with the people of the city who have no wish to have this on their doorsteps.
“It’s particularly distressing at this time of year.
“The people of Newry and the wider area will be distraught that this has happened.
“I would urge anyone with any information to contact the PSNI. We need to do everything we can to take these guns off our streets once and for all.”
His party colleague Justin McNulty MLA said the local community was reeling.
“This is a shocking incident and the local community has been in a state of disbelief as details have emerged,” he added.
“Nobody wants to see scenes like this in our community.
“There can be no place for guns on our streets and I would encourage anyone with any information to come forward to police as soon as possible so the people behind this disgraceful attack can be apprehended and this dangerous weapon can be removed from circulation before anyone else is hurt.”
Sinn Fein MLA Liz Kimmins said the local community was in shock.
“There is absolutely no place in our community for guns or those involved in this attack,” she added.
Alliance Policing Board member Nuala McAllister MLA and Newry representative Helena Young condemned those behind the murder.
“This has sent shockwaves through the local community,” said Ms Young.
“My sympathies are with the loved ones of the deceased after this disgraceful act of violence.
“Those who have carried out this murder represent no one and the people of Newry don’t want them. They have spread fear across the city with this act and they need to be taken off the streets.”
Ms McAllister added: “There is no place for guns on our streets.
“This is a call back to the dark old days and we cannot allow those who want to drag us back to the past to do so.
“If anyone has any information on this tragic incident, I ask them to take it to police immediately.”