The Israeli army attacked Shujaya with 120 bombs weighing one tonne each, a military spokesperson in Tel Aviv said.
Avichay Adraee, a spokesman for the Israeli army to the Arab media, said on Twitter: "Ground forces were able to seize the new sites in the area east of Gaza #Shujaya where we used 120 bombs weighing one tonne."
Adraee did not say when the bombs were used on the neighborhood. Palestinians accuse Israel of committed a massacre in the area on Sunday.
He also did not elaborate on the areas seized by the army in the region.
The spokesman also said on Twitter: "Over the last 24 hours, the Israeli army has killed 30 saboteurs in the #Gaza Strip, bringing the total number of terrorists killed since the start of the ground operation to 210."
He added: "Our troops discovered 28 tunnels and destroyed six of them. Two hundred other terrorist targets were also hit since yesterday."
Seventy-five Palestinians were killed on Sunday during the Israeli shelling of houses in the densely populated neighbourhood of Shujaya, according to the Palestinian Ministry of Health.
The Shujaya neighbourhood, one of the oldest and largest neighborhoods of Gaza City, is located to the east of the city, and is divided into two parts: Shujaya North (new) and Shujaya old (Turkmen). It covers an area of approximately 15 square kilometres and is inhabited by around 150,000 people.
Seventeen days ago, Israel began an offensive on Gaza which it calls "Operation Protective Edge", which was expanded on Thursday to include a ground assault accompanied by attacks by air and sea.
To date the Israeli attacks have led to the death of 644 Palestinians, and injured about 4,080 others, according to the Palestinian Ministry of Health.
Some 1,090 housing units have been demolished with an additional 18,070 damaged by the shelling, of which 994 housing units are now "uninhabitable", according to preliminary information released by the Ministry of Public Works Palestinian.
Thirty-one Israelis have been killed as a result of the offensive, two who whom were civilians. An additional 435 were injured, most suffering from "panic" attacks, according to data from the army and the Israeli police.
The Izz Ad-Din Al-Qassam Brigades, the military wing of Hamas, said it killed 52 Israeli soldiers and captured another.