By the time "Monkey Kung Fu" came out in May 1979, Shaw Brothers had to compete with new independent forces like Ng See Yuen's Seasonal Film Corporation and of course Raymond Chow's Golden Harvest. Comparatively cost-efficient productions like Drunken Master dominated the box office and became blueprints for potential blockbusters. Instead of building intricate studio sets, film crews simply headed for Hong Kong's rural areas. At that time, the Chat Sing Temple in Shap Sze Heung became a favoured film location.
On the last two screenshots you can see, that they've placed some fake walls in order to cover the surroundings.