Banbridge’s Lotus Homes has filed an application to build 178 homes outside the town.
If approved, 54 detached properties, 100 semi-detached houses and 24 apartments will be constructed, alongside landscaping and a children’s play area.
The proposed site of the development lies opposite 25-35 Newry Road.
It is currently agricultural land that has been zoned specifically for housing projects.
The plan is the second major residential project for the company this year.
In April, it launched a proposal for a £55m block of 724 student flats on the site of a former car park near Belfast’s Cathedral Quarter.
The development will be known as 140 Donegall Street and will be close to the new Ulster University campus.
The 10-storey building will have areas for socialising, resident break-out spaces, a gym and a cinema room.
Around 180 jobs will be created in the construction phase of the development, which previously won planning permission, although amended proposals have now been lodged.
Lotus Property managing director Alastair Coulson said: “Despite the pandemic, the demand for student accommodation in Belfast has been resilient and this proposal offers a fantastic investment opportunity.
“With such a vibrant and energetic student population in the city, 140 Donegall Street is the perfect location for students to live, study and socialise.”
Lotus Property also owns The Boulevard outside Banbridge and The Junction in Antrim.
It is not the only firm to file a planning application for a new housing scheme in the Armagh City, Banbridge and Craigavon Borough Council area.
JH Turkington and Sons has filed an application for 35 new dwellings on lands 45 metres to the north and east of 7 Swallowfield Court, and 30 metres south-east of 59 Clendinning Way in Portadown.
The site is currently home to a private football pitch.
Separately, Ballyclare-based Hagan Homes has started construction work on its 18-house Ebrington Hall development in east Belfast.
It will feature a range of two-bed apartments within the sought-after Ballyhackamore area.