Peculiar market place, we hear (7)
I believe the answer is:
bizarre
'peculiar' is the definition.
(I've seen this before)
'market place we hear' is the wordplay.
'market place' becomes 'bazaar' (I've seen this before).
'we hear' shows a homophone (sound like).
'bazaar' sounds like 'BIZARRE'.
(Other definitions for bizarre that I've seen before include "Weird and wonderful" , "Funny" , "Really weird" , "Freakish" , "Off-the-wall" .)