Hamas leader Khalil al-Hayyah's son Osama al-Hayyah, his daughter-in-law and two of their children were killed during the attack, Xinhua reported.
Meanwhile, Israeli artillery heavily shelled the neighbourhood of Sheja'eya in Gaza City.
According to health officials, rescue teams and members of the Red Cross were not able to reach the casualties due to the intensive fire from the Israeli Army tanks in the area.
While Israeli Army tanks were shelling eastern, northern and southern Gaza Strip, its F16 and F22 fighter jets were hovering over the coastal enclave.
Over 300 Palestinians have been killed in Israel's ongoing operation to root out Hamas fighters in Gaza.
The UN mission in Gaza said more than 60,000 people have been displaced and over 2,000 have been injured.