Spring @Value is not resolving to value from property file

I've had this working in some other project before, I am just re-doing the same thing but for some reason it's not working. The Spring @Value is not reading from property file, but instead it's taking the value literally

AppConfig.java

@Component
public class AppConfig
{
    @Value("${key.value1}")
    private String value;

    public String getValue()
    {
        return value;
    }
}

applicationContext.xml:

<context:component-scan
    base-package="com.test.config" />
<context:annotation-config />

<bean id="appConfigProperties"
    class="org.springframework.beans.factory.config.PropertyPlaceholderConfigurer">
    <property name="location" value="classpath:appconfig.properties" />
</bean>

appconfig.properties

key.value1=test value 1

In my controller, where I have:

@Autowired
private AppConfig appConfig;

The application starts just fine, but when I do

appConfig.getValue()

it returns

${key.value1}

It doesn't resolve to the value inside the properties file.

Thoughts?

Solution

Problem is due to problem in my applicationContext.xml vs spring-servlet.xml - it was scoping issue between the beans.

pedjaradenkovic kindly pointed me to an existing resource: Spring @Value annotation in @Controller class not evaluating to value inside properties file and Spring 3.0.5 doesn't evaluate @Value annotation from properties